Market Calm Returns
Financial markets are stabilising this morning as investors process the implications of yesterday’s soft US inflation print and more hawkish-than-expected Fed decision. The dollar is moving sideways along with the pound and euro, Treasury yields are slipping, and North American equity futures are setting up for a mixed trading day. The May inflation report was unquestionably positive, consistent with rate cuts beginning in the autumn months. Headline and core consumer price indices increased by less than expected, with declining energy prices putting downward pressure on the all-items measure while a sharp decline in car insurance premiums offset still-stubborn shelter costs....